Disposal of Entire Stake in the PDGI Businesses
Date: 1st May 2014
On behalf of: B.P. Marsh & Partners Plc ("B.P. Marsh", "the Company" or "the Group")
Immediate Release
B.P. Marsh & Partners Plc
Disposal of Entire Stake in the PDGI Businesses
B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce the disposal, to its fellow shareholders, of its respective stakes in Portfolio Design Group International Limited, Morex Commercial Limited, Preferred Asset Management Limited and New Horizons Nominees Limited (together the "PDGI Businesses") for a combined total of £1,250,000 in cash.
The Group expects to receive approximately £1,035,000 net in cash after the payment of all associated expenses, including carried interest, corporation tax, and advisers' fees. At 31st July 2013, the Company's most recent published valuation, a combined gross valuation of £1,674,000 was attributed to these businesses, with a net receivable of £1,128,000 after all associated expenses included within the interim statements. Therefore this disposal delivers cash to the Group which is (net) £93,000 lower than the last published valuation, but reflects the Company's current valuation of the PDGI Businesses and the Board is confident that this opportunity to dispose of these long-term investments is well-timed and in keeping with the Company's strategy, delivering an internal rate of return of 24.5% per annum, including all income received.
This divestment also delivers cash to the Group to enable it to pursue new opportunities, from a strong current pipeline. It also allows the PDGI Businesses to restructure their shareholder base accordingly and pursue new opportunities as they see fit.
The Group originally invested in the PDGI Businesses in 1994, a collection of companies which has been instrumental in shaping the way the traded endowment market operates today, and has invested a net total of £253,000 over the investment period. The Group had also supported the PDGI Businesses through its diversification into Investment Management which commenced in 2002 and through a prolonged period of difficult trading, since 2008. The Group considers that this is therefore an opportune moment to exit in the best interests of all parties involved.
Under the terms of the transaction Mr Philip Mortlock, a Non-Executive Director on the Board of B.P. Marsh, will resign as a director of Portfolio Design Group International Limited, and its 100% subsidiary SL Investment Management Limited.
As previously published, Mr Stephen Clarke, a Non-Executive Director on the Board of the Company, is entitled to 20% of any gain on the sale of the PDGI Businesses, as per the carried interest agreement between the Group and Mr Stephen Clarke.
Brian Marsh OBE, Chairman of B. P. Marsh said:
"This divestment demonstrates the Group's avowed aim of targeting opportunities that deliver long term growth potential to our shareholders, and repositions our current portfolio to meet this goal. The Group would like to wish everyone within the PDGI Businesses all the best in their future endeavours."
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Fred Walsh / Charles Leigh-Pemberton / Atholl Tweedie +44 (0)20 7886 2500
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains ten companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Since formation over 20 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for at least five years.
Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.
Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 15 years' experience in the financial services industry. Jonathan advises investee companies, has a number of non-executive appointments over three investee companies and evaluates new investment opportunities.
Daniel Topping is a Member of the Chartered Institute of Securities and Investment (MCSI) and an Associate of the Institute of Chartered Secretaries and Administrators (ACIS), having graduated from the University of Durham in 2005. Dan joined B.P. Marsh in February 2007 having started his career at an accountancy firm. In 2011 he was appointed as a director of B.P. Marsh and currently has a number of non-executive appointments over five investee companies and evaluates new investment opportunities.
Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. Camilla has a number of non-executive appointments over two investee companies, is Chair of the New Business Committee and is a Member of the Investor Relations Society.
Natasha Dunbar has over 18 years' experience in the financial services industry. Having joined the Company in 1994 she was made managing director in March 2002, subsequently becoming a non-executive director of the Company in 2008, a position she held for five years. Natasha was reappointed as a Director in February 2013 and holds a non-executive appointment at one of our investee companies.
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